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Bank of Canada meets today and virtually everyone expects a hike. A cautious hike is indeed the most likely scenario, though I wouldn't rule out a hawkish hold. There should be a big market reaction in either case. 1.26 area is the first stronger resistance and 1.23 the support.
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Loonie extends above 1.33
USD/CAD has been bought every day so far this week. It was BOC meeting today and the bank used the opportunity for some dovish talk even thought the reference to Canadian dollar strength was dropped in an unusually brief statement.
The pair is up more than 250 pips, eyeing January high near 1.3390. Successful break above that would target 1.3450 - 1.35. Area between 100 DMA (1.3280) and 1.33 should hold if this rally is to continue.
The pair is up more than 250 pips, eyeing January high near 1.3390. Successful break above that would target 1.3450 - 1.35. Area between 100 DMA (1.3280) and 1.33 should hold if this rally is to continue.
BOC holds rates as oil nears $50
BOC held rates steady yesterday and didn't deliver a dovish statement as many in the market expected. Canadian dollar adjusted higher after the event while firming oil prices haven't been doing it any harm. Brent broke $50 overnight with WTI trading close to the big figure too.
Loonie is back below 1.30 - 1.3065 area, now targeting 50 DMA. That looks like a good spot for a pullback support but, if oil extends above $50, a deeper pullback in the pair seems more likely. The aforementioned area sha…
Loonie is back below 1.30 - 1.3065 area, now targeting 50 DMA. That looks like a good spot for a pullback support but, if oil extends above $50, a deeper pullback in the pair seems more likely. The aforementioned area sha…
Positive risk sentiment continues
While commodity currencies already had a great few days, low-yielders such as euro, yen and franc remained supported up until today. Positive risk sentiment finally impacted them as well while the dollar strengthened across the board.
U.S. (Core) Retail Sales and (Core) PPI reports and especially BOC meeting later in the day are definitely factors behind some position adjustments - particularly in commodity pairs which have become a bit extended, technically.
U.S. (Core) Retail Sales and (Core) PPI reports and especially BOC meeting later in the day are definitely factors behind some position adjustments - particularly in commodity pairs which have become a bit extended, technically.